Jeera Tumbles On Selling Pressure

Expectation of better output coupled resulting from favourable weather in the jeera growing areas (Gujarat and Rajasthan) led prices to remain bearish for the third consecutive week and settled 4.56% and 3.71% down w-o-w. Demand from the overseas and domestic buyers also continues to remain dull.

According to Gujarat farm ministry, area sown under jeera till January, 18th 2012 stood at 3.682 lakh hectares (lh) up 50% as compared to last year while area covered in Rajasthan till date is expected to be 3.03 lakh hectares as compared to 3.30 lakh hectares in the same period last year.

Carryover stocks of jeera is expected to be around 9-10 lakh bags as compared to 4-5 lakh bags in the last year.

Prices in the global markets of Indian origin are quoting around $2,800-2,950/tn while Syrian origin is quoting at $3,100-$3,150/tn.

Production, Arrivals and Exports

Unjha markets witnessed arrivals of 5,000 bags while offtakes stood at 4,000 bags on Saturday.

Production of jeera in 2011-12 is expected to be around 35 lakh bags as compared to 29 lakh bags in 2010-11. (Each bag weighs 55 kgs). (Source: spot market traders).

According to Spices Board of India, exports of Jeera during April 2011-November 2011 stood at 26,500 tonnes as compared to 20,750 tonnes in 2010-11, an increase of 27.7%.

Turmeric Weighs Down On Fresh Arrivals

Improved fresh arrivals in the domestic market led Spot prices to settle 1.81% sown w-o-w. However, Futures witnessed short coverings and settled 1.79% higher w-w. Fresh arrivals are improving which are likely to pressurize prices in the coming weeks.

Production, Arrivals and Exports

Arrivals in Nizamabad and Erode mandi stood at 5,000 bags and 7,000 bags respectively on Friday.

Turmeric production for the year 2011-12 is projected at historical high of 82 lakh bags (1 bag= 70 kgs) compared to 69 lakh bags in 2010- 11. Erode is expected to produce 45 lakh bags of turmeric a rise of 29% as compared to previous year.

According to Spices Board of India, exports of Turmeric during April 2011- November 2011 stood at 58,000 tonnes as compared to 35500 tonnes in 2010-11, rise of 56%.

Targets set by the Spices Board have already been met till October 2011. Exports are expected to touch new historical levels in 2011-12.

India Oilseed Complex Settles Higher On Global Cues

Soybean prices gained on Saturday following positive closing of soybean prices at CBOT which supported the prices.

Chinese demand for U.S soybean is the price driving factor. Second advance estimates in India reported lower production of oilseeds by 1 million tons compared to last year.

Soy oil prices followed the soy bean and positiveness in the international markets. Higher closing of CBOT soy oil prices on Friday supported the gains.

Crushing is also very lower in Indian markets due to absence of the good margins which is resulting in lower production of oil and in turn supporting the prices.

Mustard seed prices gained on Saturday in line with the soy complex as the second advance estimates also released lower production numbers for oilseeds. Oilseed production is estimated to decline by 1 million tons during 2011-12 which supported the prices to gain largely.